Sutter Health paid around $450 million last year to expand its healthcare system in the East Bay area in one of the region's largest deals.
The Sacramento, California-based company plans to turn the 12-acre site in Emeryville, California, into a $1 billion flagship medical facility serving the region. The seller, BioMed Realty, had planned to build a major life science campus called Emery Yards on the site but the developer changed its mind as demand for research and development space in the San Francisco Bay Area came to a halt over the past few years.
Sutter Health's new 1.3-million-square-foot medical center is expected to open in 2033, providing a variety of primary and specialty patient services and ultimately replacing the Sacramento-based healthcare operator's 339-bed Alta Bates hospital in Berkeley.
The deal won a 2026 CoStar Impact Award, as judged by real estate professionals familiar with the market.
About the project: The deal included two existing buildings at 5555 Hollis St. and 5300 Chiron Way, plus a 1,992-space parking garage and surrounding property.
What the judges said: "Sutter Health’s 2025 purchase of the Emery Yards campus is a catalyst for East Bay economic growth," said Rachel Kram, a partner at CP Partners. "Sutter is creating a permanent regional anchor that will double local healthcare capacity and bring thousands of high-wage jobs to the area."
They made it happen: Michael Taquino and Kyle Kovac of CBRE represented the buyer.